New tariffs on U.S. Goods, including bourbon, yachts and motorcycles imposed by the European Union are already being felt by companies, such as iconic American motorcycle manufacturer Harley-Davidson as the company announced it would begin shifting some of its production to its international facilities to curb costs.
Harley’s stock dropped sharply by 6.92%. ETFs with the heaviest Harley-Davidson exposure felt the burn as well–First Trust NASDAQ Global Auto ETF (NASDAQ: CARZ) was down 2.84% and First Trust Nasdaq Transportation ETF (NASDAQ: FTXR) fell by bout 4%.
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“To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for EU destinations from the U.S. to its international facilities to avoid the tariff burden,” the company said in a filing.